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The weekly newspaper for air cargo professionals No. 1,067
10 February 2020
air cargo India preview
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INSIDE CORONAVIRUS AND AIRFREIGHT
THE world’s headlines have been gripped in recent weeks with the spread of the coronavirus. It has caused a number of deaths and much fear .... PAGE 2
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Fab Four
ir France-KLM Cargo, Delta Air Lines Cargo and Virgin Atlantic Cargo are promising cargo customers “more connections, greater shipment routing flexibility, improved trucking options, aligned services and innovative digital solutions” with the
launch of an expanded trans-Atlantic joint venture (JV). The new partnership, which represents some 23% of total trans-Atlantic cargo capacity or more than 600,000 tonnes annually, will enable the airlines to offer what they claim is “the best-ever
customer experience, and a combined network of up to 341 peak daily trans-Atlantic services – a choice of 110 nonstop routes with onward connections to 238 cities in North America, 98 in Continental Europe and 16 in the UK.” Read more on this story on Page 4.
IMC CAREERS is to launch a project to encourage and help young talented people to seek careers in the air cargo industry. Michael Sales, air cargo marketing specialist, with strong support from Sebastiaan Scholte, believes passionately that if students and school leavers had more knowledge about this fascinating business, they would want to be involved. “I have worked with a wide range of air cargo companies for over 20 years”, explains Sales, “during that time many people have said how much they need to attract a new generation with fresh ideas to make their own companies and the overall industry more competitive. I have published several successful books on the
subject which have been well received by universities, but I still feel there is a serious lack of awareness about air cargo, which offers so many fascinating and rewarding careers. We are aiming to attract them to this wonderful business, which has been hidden for so many years. I am extremely grateful to Sebastiaan for his support and encouragement, his knowledge and experience are invaluable.” Scholte comments: “In order to remain sustainable, we need to attract and retain talent. IMC Careers has created a website and video showing the attractions of our industry for young enthusiastic people where we will feature several sponsors from the air cargo
supply chain. The campaign will be distributed through the regular and social media, universities and schools. “Universities complain that they cannot provide interesting internships, whereas companies are struggling to attract young talent. The website will be the interface where this apparent mismatch between demand and supply for jobs, internships and projects will be solved. Initially we will focus on the air cargo industry and at a later stage we will expand to other modalities in logistics. I am thrilled to provide support and advice to Michael Sales, who has extensive experience and who will surely make this project a success!”
New careers initiative for air cargo launched
EL AL STARTS CARGO TO LIEGE
EL Al has re-entered the freighter market with Atlas Air operating a Boeing 747-400F on the Tel Aviv to Liege route. The flag ... PAGE 3 FAB FOUR
AIR France-KLM Cargo, Delta Air Lines Cargo and Virgin Atlantic Cargo are promising cargo customers “more connections, greater ... PAGE 4
THE NAME’S DHL ...
SINCE Casino Royale in 2006, DHL has been responsible for the transport and logistics solutions related to the shooting of the .production of ... PAGE 5
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Coronavirus crisis and airfreight special THE world’s headlines have been gripped in recent weeks with the spread of the coronavirus. It has caused a number of deaths and much fear across the world. It has also greatly impacted the aviation and airfreight industries. It is truly a changing situation but is unlikely to improve in the short-term. A number of airlines have already pulled services or severely curtailed operations. Many are likely to follow in the coming weeks.
Delta suspends China services until further notice FOLLOWING the announcement of US Health and Human Services screening protocols, Delta temporarily suspended flights between the US and China from February 2. As part of this process, every effort was made in advance to contact those with impacted cargo bookings on flights to and from China. The last China-bound flight departed the US on Saturday, February 1 with the last return
flight back to the US departing China on February 2. “We will continue to monitor the situation closely and may make additional adjustments as the situation continues to evolve. “Please contact your Delta Cargo Sales Professional or the Delta Cargo Customer Service Centre 1-800-DL-CARGO if you have any questions regarding these adjustments,” said the airline..
South African suppliers airlift 2.8 million facemasks to China DUBE Cargo Terminal processed a 100-tonne capacity freighter that airlifted facemasks and other protective gear, as well as medical equipment to China, as part of the government’s efforts to stop the spread of the coronavirus. Over 2.8 million facemasks, from local KwaZulu-Natal and Gauteng suppliers, bought by the Chinese government from local suppliers were consolidated and processed through the Dube Cargo Terminal at Durban’s King Shaka International Airport and loaded on specially chartered freighters destined for Guangzhou, China. “The freighter will airlift up to 50 tonnes of medical facemasks to China. The Dube Cargo Terminal and ACSA have worked with local freight forwarders and Air China to ensure that we are able to land and process this aircraft timeously. ‘We have established ourselves as a reliable
partner within the aviation industry, so when time-sensitive air cargo needs to be moved via South Africa, we get the call from the shippers, freight forwarders and aircraft operators. “One of the biggest challenges for operations like these is being able to respond to very short turnaround times, while still servicing scheduled aircraft,” said Hamish Erskine, chief executive officer of Dube TradePort Special Economic Zone.
American Airlines suspends Oman Air suspends flights to China flights until end of March BASED on the US Department of State’s recent increase of the China Travel Advisory to a Level 4 (Do Not Travel), American suspended its operations to and from the Chinese mainland until March 27. In a statement, the airline said: “Our teams are contacting affected customers directly to accommodate their needs. We will continue to evaluate the schedule for March 28 and beyond and make any adjustments as necessary.”
Swiss WorldCargo extends suspension of services to Beijing and Shanghai until end of February AFTER thoroughly evaluating all currently available information on the Coronavirus, SWISS and Swiss WorldCargo have decided to jointly suspend flights to/from Beijing and Shanghai until February 28, with immediate effect. Initially the flights had been suspended until February 9. Flight operations to/from Hong Kong will continue as planned. Together with the Lufthansa Group, SWISS and Swiss WorldCargo will continue to monitor the situation and remain in close contact with all responsible authorities, and “keep you updated regularly”, said the airline in a press statement.
Lufthansa Cargo grounds animal shipments until further notice
BOEING is to donate 250,000 medical-grade respiratory masks to address medical supply shortages in China. The masks will be provided to local health officials battling the spread of the coronavirus in Wuhan City, Hubei Province, and Zhoushan, Zhejiang Province. “Our thoughts continue to be with all those in China dealing with the health impacts related to the coronavirus,” said Boeing president and CEO Dave Calhoun. “Through our donation, it is our hope that we can help limit the spread of this virus and ease the burden on local aid workers and medical personnel.” Boeing continues to monitor the situation closely. To date, the company has provided 25,000 medical-grade respiratory masks for employees working in the region.
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FOLLOWING the directives of the Public Authority for Civil Aviation (PACA), Oman Air suspended all flights to and from Guangzhou, China, effective Monday, 3 February, 2020. Additionally, acceptance of bookings to and from Guangzhou was suspended. “The safety of our guests and employees remains our highest priority. We apologise for any convenience caused by this action,” said the airline in a statement. The carrier advised all customers to monitor the airline’s website and official social media channels for further updates.
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UNTIL further notice, the German flag-carrier will nor accept live animals for carriage on routes to and from the Chinese Mainland until further notice.
What is coronavirus? THE World Health Organization has given the definitive description of the virus that is creating such fear and disruption across the globe. Coronaviruses are a large family of viruses found in both animals and humans. Some infect people and are known to cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). A novel coronavirus (CoV) is a new strain of coronavirus that has not been previously identified in humans. The new, or “novel” coronavirus, now called 2019-nCoV, had
not previously been detected before the outbreak was reported in Wuhan, China in December 2019. As with other respiratory illnesses, infection with 2019-nCoV can cause mild symptoms including a runny nose, sore throat, cough, and fever. It can be more severe for some persons and can lead to pneumonia or breathing difficulties. More rarely, the disease can be fatal. Older people, and those with pre-existing medical conditions (such as, diabetes and heart disease) appear to be more vulnerable to becoming severely ill with the virus.
Pelican BioThermal acquires NanoCool
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elican BioThermal, the global name in temperature-controlled packaging, has acquired NanoCool, an Albuquerque, New Mexico-based manufacturer of temperature-controlled packaging solutions. This acquisition further increases the breadth of the Pelican BioThermal product portfolio. The addition of NanoCool customers, market segments and product technologies will enable Pelican BioThermal to expand its access to patients, laboratories and other last-mile players in the distribution of life sciences materials and collection of patient laboratory samples. “The core competency of Pelican BioThermal and NanoCool — innovative temperature-controlled packaging — is very much aligned, but there is little overlap between our market segments and product technologies,” said David Williams, president of Pelican BioThermal. “Adding NanoCool’s capabilities to our diverse product line will help fuel our efforts to expand our offerings and bring further innovation to growing sectors of the life sciences industry spanning the globe.”
Swiss WorldCargo begins flying to Ljubljana
IATA: Worst year in a decade for airfreight
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he International Air Transport Association (IATA) has released full-year 2019 data for global airfreight markets showing that demand, measured in freight tonne kilometres (FTKs), fell by 3.3% compared to 2018 while capacity (AFTK) rose by 2.1%. This was the first year of declining freight volumes since 2012, and the weakest performance since the global financial crisis in 2009, when air freight markets contracted by 9.7%. In the month of December, cargo volumes contracted 2.7% year-on-year while capacity rose 2.8%. Air cargo’s performance in 2019 was dampened by weak growth in global trade of just 0.9%. The sector’s underperformance was also due in particular to slowing GDP growth in manufacturing-intensive economies. Softer business and consumer confidence, along with falling export orders, also contributed to airfreight struggles. While there are signs that confidence and orders could pick up in 2020, “it is too early to
say what long-term effects will be seen from the impact of restrictions associated with combatting the coronavirus outbreak,” notes IATA. “Trade tensions are at the root of the worst year for air cargo since the end of the Global Financial Crisis in 2009. While these are easing, there is little relief in that good news as we are in unknown territory with respect to the eventual impact of the coronavirus on the global economy. “With all the restrictions being put in place, it will certainly be a drag on economic growth. And, for sure, 2020 will be another challenging year for the air cargo business,” said Alexandre de Juniac, IATA director general and CEO. All markets except Africa suffered volume declines in 2019. Asia-Pacific retained the largest share of FTKs, at 34.6%. The share of freight traffic increased modestly for both North America and Europe, to 24.2% and 23.7%, respectively. Middle East carriers’ traffic share held steady at 13%. Africa and Latin America saw their shares lift marginally, to 1.8% and 2.8%.
El Al starts cargo service to Liege
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wiss WorldCargo has begun cargo operations to Ljubljana, Slovenia.. Swiss WorldCargo will operate flights between Zurich and Slovenia’s capital seven times a week. Swiss WorldCargo will plan flights using an Airbus A220 and Embraer E-190, with a weekly capacity ranging between 3.5 to 10 tonnes. General cargo shipments will be available to and from the destination, while mail will be accepted as of March 2 and special cargo in the coming weeks. The dedicated team from Cargo Austria, based in Vienna, will handle LJU bookings and all operational issues. Physical ground handling will be done by A/P LJU (Fraport Slovenija). Furthermore, an RFS service for larger shipments is expected to start soon. The service connects Slovenia’s capital and main business hub with a non-stop flight to Zurich, as well as to and from the intercontinental Swiss WorldCargo networks. “We are excited to begin operating our non-stop service to and from Ljubljana,” says Jochen Leibfritz, head of cargo North and East Europe. “The destination will connect Zurich and the entire Swiss WorldCargo network with an important Central European market which is home to a growing pharma sector.”
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l Al has re-entered the freighter market with Atlas Air operating a Boeing 747-400F on the Tel Aviv to Liege route. The flag carrier signed an ACMI (aircraft, crew, maintenance and insurance) agreement with Atlas Air Worldwide Holdings for flights that began last month. Liege is Belgium’s main air cargo facility and bucked the downward global trend last year by reaching a new record of 902.480 tonnes of transported goods in a 3.6% increase over 2018’s total. John Dietrich, President and Chief Executive Officer, Atlas Air Worldwide., said: “This new agreement will allow El Al to capitalise on the state-of-the-art service solutions provided by our aircraft.
Quote of the week
“We welcome El Al as a new customer and look forward to supporting El Al as it continues to capture market opportunities and enhance its position as a leader in Israel’s cargo industry.” Ronen Spira, head of El Al’s cargo division, said: “We are committed to providing our customers with a variety of cargo solutions. “This strategic initiative with Atlas Air enables us to provide our customers with a stable and high-quality operation for all types of cargo. Atlas Air’s fleet of 747 aircraft is well-suited to support El Al’s operations and schedules.” The new service is in direct competition with ACE Belgium Freighters, which runs on 747F between Liege and Tel Aviv. El Al’s cargo history goes back to 1988 when it flew 150 giant support columns for the construction of maritime oil rigs to Alaska.
“The impact on the passenger business will be more severe - as cargo cannot feel fear.”.”
Robert Van de Weg, chief commercial officer of Paris-based GSSA, ECS Group, on the coronavirus emergency.
MASkargo uplifted disposable medical protective gear for use at hospitals in the Hubei province of China. Pictured are Ibrahim Mohamed Salleh, CEO of MAB Kargo (second from left) together with Ng Yeen Seen, founder of OPS Harapan (one from left) checking on the shipment before delivery to China.
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Leipzig/Halle airport receives IATA CEIV Pharma certification
LEIPZIG/HALLE airport, Europe’s fifth-largest airfreight hub, has received CEIV Pharma certification, enabling it to process time-critical, temperature-sensitive pharmaceutical shipments around the clock. Following a one-year process, IATA, has certified PortGround GmbH. The company belongs to Mitteldeutsche Flughafen and is a ground handling and cargo specialist. “Thanks to the CEIV Pharma accreditation, we are expanding our business area and now have a fully certified process for sensitive pharmaceuticals. That means we can provide a full range of handling services at Leipzig/Halle Airport from a single source – from receiving deliveries, preparing and storing freight to loading it on the aircraft”, explained Alexander König, managing director of PortGround. The international CEIV classification stands for “Center of Excellence for Independent Validators in Pharmaceutical Logistics”. It confirms that sensitive pharma goods are handled in accordance with international standards. Certification requires appropriate quality management and regular training for all those involved in the process, along with a suitable infrastructure. The airport laid the foundations for this back in 2017 with a new cold storage facility in the World Cargo Center. The facility offers direct access to the apron, ensuring that goods only have to be transported a short distance to and from the aircraft and lorries. With a volume of around 1.24 million tonnes in 2019, Leipzig/Halle airport is the fifth largest airfreight hub in Europe. The airport has a 24-hour operating permit for cargo flights and a direct link to the trans-European motorway and rail network.
Geodis recognised for actions to mitigate climate impact CDP, the former Carbon Disclosure Project, has awarded forwarder GEODIS an “A -” rating for 2019. The Group is now categorised as a ‘Leader’ in environmental care. This result recognises the global logistics provider as a leader that implements the relevant actions to effectively reduce its greenhouse gas emissions, reflecting outstanding environmental management. The achievement is encouraging given that only 6% of companies assessed by CDP from around the world have been rated “A –“ or higher. “This score demonstrates that GEODIS places climate and carbon issues at the focal point of its business strategy. Our Group has set itself the objective of reducing its greenhouse gas emissions by 30% by 2030 and supports its customers in the implementation of solutions that are ever more respectful of the environment.” says Marie-Christine Lombard, GEODIS CEO.
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Air France-KLM, Delta and Virgin Atlantic launch trans-Atlantic JV
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ir France-KLM Cargo, Delta Air Lines Cargo and Virgin Atlantic Cargo are promising cargo customers “more connections, greater shipment routing flexibility, improved trucking options, aligned services and innovative digital solutions” with the launch of their expanded trans-Atlantic joint venture (JV). The new partnership, which represents 23% of total trans-Atlantic cargo capacity or more than 600,000 tonnes annually, will enable the airlines to offer the best-ever customer experience, and a combined network of up to 341 peak daily trans-Atlantic services – a choice of 110 nonstop routes with onward connections to 238 cities in North America, 98 in Continental Europe and 16 in the U.K. Customers will be able to leverage an enhanced network built around the airlines’ hubs in Amsterdam, Atlanta, Boston, Detroit,
London Heathrow, Los Angeles, Minneapolis, New York-JFK, Paris, Seattle and Salt Lake City. It creates convenient nonstop or one-stop connections to every corner of North America, Europe
and the U.K., giving customers the added confidence of delivery schedules being met by a wide choice of options.
Greater co-operation
The expanded JV enables greater co-operation between the airlines, focused on delivering world class customer service and reliability on
den Heijer: The combined network means more choices and value for our customers
Cole: First step on the journey
Kennedy: We work with likeminded partners
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both sides of the Atlantic achieved through First co-located facilities, joint trucking options as well as seamless bookings and connected service recovery. The airlines already co-locate at warehouses in key US, UK and European airports, and will review opportunities to co-locate further at more airports around the globe. Adriaan den Heijer, executive vice-president of Air France-KLM Cargo: “We are very excited to welcome Virgin Atlantic Cargo to the successful trans-Atlantic joint venture between Air France-KLM Cargo and Delta Cargo. “The combined network means more choices and value for our customers as we align our services to enable seamless transfers and further streamlining of transport times. This enhanced joint venture offers the most and best trans-Atlantic options ever in the cargo industry.”
Specialised products
The four airlines will leverage their expertise in the transportation of specialised products, including end-to-end GDP and IATA CEIV quality compliance for pharmaceuticals, supported by dedicated teams and facilities across the globe. The JV will allow the airlines to provide customers with a diversified product range to best suit their individual requirements. “This announcement is just the first step in the journey,” said Shawn Cole, vice president Delta Cargo. “Our customers can expect additional benefits as we evolve our partnership further to deliver best-in class customer experience and operational reliability, with differentiated products and services that are tailored and developed to make it easier to do business with the four airlines.”
Ease of business
Customers will be able to book their shipments with knowledgeable local teams and by using new digital solutions designed to reduce duplication and drive efficiencies as a result of greater connectivity between the airlines’ systems. Alongside the development of a growing choice of self- service technology options, customers will continue to enjoy the support of co-located customer service centres to enhance their cargo delivery experience. Virgin Atlantic Cargo’s managing director, Dominic Kennedy said: “Our great partnership with Delta has already enriched the benefits we offer to our customers. “With our expanded JV with Air France- KLM Cargo, we are even more excited about the benefits we will be bringing for our customers as we work with like-minded partners to deliver greater value across our outstanding trans-Atlantic network.”
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Royal International Cargo and Logistics joins Cargo Connection
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oyal International Cargo and Logistics is a new member of the UK-based Cargo Connection network in Egypt. The company offers a complete range of freight forwarding services by air, sea and land as well as Customs clearance, breakbulk and project logistics, covering all major airports and ports in Egypt. They were recommended to Cargo Connections by current members, says the network. Elhoussieny Abdulhameed (CEO) says: “At Royal International, we understand the necessity of smooth freight forwarding and clearing services. We also understand local rules and regulations and the challenges of global business and we use this knowledge to offer a variety of tailored and individual solutions while keeping costs to a minimum. “Our experienced and dedicated team, adept in international freight forwarding procedures, offer a 360° service – from documentation to firm delivery commitments, be it import or export, we ensure attention to detail in every shipment.”
UPS releases improved Q4 2019 earnings
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UPS has announced Q4 2019 adjusted earnings per share of $2.11, an 8.8% increase over the same period last year. The company’s results highlight the strong volume growth in the US domestic segment and the impact of successful execution from all segments. UPS’s transformation investments generated higher total revenue, operating profit growth and margin expansion in all segments. Total revenue increased to $74 billion, driven by strong volume growth in the US. Capital expenditures were $6.4 billion, and on an adjusted basis $6.5 billion, to support network enhancements. Annual adjusted free cash flow exceeded $4.1 billion. Dividends paid were $3.3 billion, a per-share increase of 5.5% over the prior year. The company repurchased more than nine
million shares for approximately $1 billion. “Our network improvements from transformation enabled UPS to embrace a surge in demand for air products while at the same time generate productivity improvements and positive operating leverage,” said David Abney, UPS chairman and CEO. “Looking to 2020, we will continue to adapt to the changing environment, strengthen our network and create new solutions to support our strategic growth initiatives and help our customers grow and compete.”
Pension charge
In the fourth quarter of 2019, the company incurred a non-cash, after-tax mark-to-market (MTM) pension charge of $1.8 billion, an aftertax transformation charge of $39 million, and US domestic after-tax legal contingency and expense charges of $91 million, predominantly related to the New York cigarette case. The total impact to EPS was $2.23 per diluted share. MTM pension charges of $1.42 per diluted share were included in the company’s fourth-quarter GAAP results in the prior-year period, developing tomorrow’s digital standards for ticketing applications: to work on established interfaces right from the design phase is an exciting prospect.”
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The name’s DHL ..
SINCE Casino Royale in 2006, DHL has been responsible for the transport and logistics solutions related to the shooting of the production of the 007 films. For No Time To Die – in cinemas April 2 – DHL transported everything around the globe via air, ocean, and road freight with precision timing to keep to the filming schedule. Frank Appel, CEO Deutsche Post DHL Group, notes: “We are proud to have supported the famous Secret Service agent on his mission to save the world for the fifth time.”
AirBridgeCargo completes trial B747-8 loading of GE9x
AIRBRIDGECARGO Airlines (ABC), has successfully completed transportation validation of the world’s largest jet engine, the GE9x, on Boeing 747-8 Freighter. The GE9X engine is developed by GE Aviation to power the Boeing 777X aircraft. The propulsor core of the engine with the height of 2.85 m and weight of 11.5 tonnes was loaded onto the 747-8 airplane in Chicago. The ABC team loaded the engine through the side cargo door on board within seven minutes.
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Lödige to deliver Swissport cargo handling system for Frankfurt Cargo City Süd LODIGEe Industries is to deliver a modern, fast and efficient cargo handling facility for Swissport’s new cargo terminal in Frankfurt Cargo City Süd. Construction of the new 2,900 sq m facility is well under way and Lödige Industries has commenced production of the cargo handling system at its manufacturing facilities in Germany and Rumania. The new facility is due for hand-over in the autumn of 2020 and will feature a space-saving and fast automated storage and retrieval system for 115 main deck unit load devices (ULDs) over two levels with an upgrade option to implement three levels. The system is operated by two of Lödige’s proven 15ft elevating transfer vehicles. Björn Ussat, director airport logistics solutions, Lödige Industries said: “We’re very pleased to support Swissport’s impressive growth goals with an air freight handling system that we know will deliver on their speed, reliability and efficiency targets for years to come and which will ultimately facilitate cargo flows.”
Cartwright Europe launches new air cargo fridge trailer CARTWRIGHT Europe has launched a new fridge trailer specifically designed for the air cargo market in continental Europe. The trailer was unveiled at a special open day at Aalsmeer near Amsterdam to stakeholders such as major transport operators, suppliers and representatives from a diverse range of sectors including pharmaceutical and engineering. The launch event was a collaboration with Cartwright’s new partner in the Benelux, Burgers Carrosserie BV. Cartwright engineers have been developing the new air cargo fridge trailer over the past nine months with the aim that it will provide an alternative option to the air cargo industry in the Benelux region and across European. Jeroen Kusters, sales manager of Cartwright Europe B.V. commented: “The recent launch of our FNA Air Cargo Fridge trailer for the European air cargo market was very
successful. We have identified that there is a need for a new player in the sector and we
believe this new Cartwright fridge trailer can fill this gap in the market.”
Agility, UNHCR partner to strengthen refugee service in Malaysia
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gility, a leading global logistics provider, and UNHCR, the UN Refugee Agency, have developed a partnership to strengthen the delivery of essential services to refugees in Malaysia; in particular vulnerable communities living outside of the country’s capital. The partnership, announced at the World Economic Forum’s annual meeting at Davos, includes a $100,000 donation from Agility. UNHCR will use the funds to establish pilot programs in Johor and Penang, Malaysia, to bring critically needed services to more than 12,000 refugees, including refugee card renewal, access to essential information related to protection, and to receive counseling on available services. There are some 178,000 refugees registered with UNHCR in Malaysia. Agility’s donation will allow UNHCR to further extend support to more than 12,000 refugees, most of them Rohingyas from Myanmar. With local engagement and support, Agility and UNHCR will eliminate the need for vulnerable refugees to travel 300+ km from their homes to Kuala Lumpur to have access to vital services, including refugee card renewal. Agility CEO Tarek Sultan said: “UNHCR’s services are critical to giving refugees and families a safe place in times of turmoil. These services will help support a stronger sense of community for refugees who have been forced to flee their homes and villages. Agility has long supported UNHCR in the Middle East. We see a need to expand our partnership to help meet the needs of refugees in Malaysia.” HRF Prince Jaime de Bourbon de Parme, Senior Advisor for Private Sector Partnerships, UNHCR, said: “Agility’s contribution is an important demonstration of solidarity from the Kuwait private sector and one that will improve the safety and well-being of thousands of refugees in Malaysia, a country that has a long history of hosting displaced populations. T @he global size and scale of displacement requires us to go beyond the business as usual approach and I am confident that Agility’s gesture will inspire the private sector to upscale its support to refugees.” Globally, Agility helps those affected by natural disasters and crises by providing supply chain expertise and resources in collaboration with commercial partners, relief groups and international institutions. In the past, Agility has supported UNHCR’s work in the Middle East, by assisting more than 490 Syrian refugee families (close to 2,500 individuals) through fundraising and donations.
EMO Trans opens in Thailand EMO Trans, a leading provider of logistics and supply chain solutions, openedEMO Trans (Thailand) on February 3, 2020. “We are very pleased to establish an official EMO Trans presence in Thailand as part of our Asia strategy,” says Jo Frigger, chairman. Aswi Pansiri has been appointed managing director of EMO Trans (Thailand) andi is supported by Natthiya Sancum, branch manager.
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Etihad Cargo renews WFS global handling framework ETIHAD Cargo, the cargo and logistics arm of Etihad Aviation Group, has renewed its global cargo handling agreements with Worldwide Flight Services (WFS), the world’s largest air cargo handler, with Frankfurt and Madrid joining six existing gateways in Europe, Asia and the United States. The three-year framework extension will see WFS continue to provide Etihad Cargo with warehouse and cargo handling services at New York’s John F Kennedy International Airport (JFK) and Washington DC’s Dulles International Airport (IAD) in the United States, Bangkok’s Suvarnabhumi Airport (BKK), as well as key European gateways at London Heathrow (LHR), Paris-Charles De Gaulle (CDG) and Brussels Airport (BRU). The six airports handle in excess of 120,000 tonnes of Etihad Cargo’s air cargo annually. Following the expansion of the above warehouse operations portfolio to include Adolfo
Suárez Madrid-Barajas (MAD) in November 2019, WFS will now also begin services at Frankfurt Airport (FRA) from 15 February 2020. Andre Blech, head of operations and service delivery at Etihad Cargo, said: “In line with our commitment to provide service-level excellence and best practices across all stations, the addition of Frankfurt and Madrid to our existing
de Oliveira to head ACI World
framework WFS further evidences our growing and mutually beneficial collaboration.” Barry Nassberg, group chief commercial officer of WFS, added: “Etihad Cargo not only expects the highest quality of handling services for its customers, it also wants these to be delivered consistently at every major airport across its network. To achieve this requires a
strong partnership approach. Our global handling framework with Etihad Cargo means WFS is fully engaged with the airline at a corporate level and able to proactively support its drive for the very best cargo and ground handling services. It also demonstrates we have a fully committed, long-term partner which values our handling expertise and is looking to us for innovative and efficient ways to help their business grow.” A key part of the framework is a renewed focus on premium products, including temperature sensitive cargo, that are key to Etihad Cargo’s value offering. Having become only the second global carrier to obtain IATA CEIV certifications for both pharmaceutical and perishable logistics, Etihad Cargo’s partnership with WFS enhances its end-to-end cool-chain solutions in the key gateways of London, Paris and Brussels, where WFS also holds CEIV accreditations for its warehouse operations.
THE Airports Council International (ACI) world governing doard has appointed Luis Felipe de Oliveira as director general of ACI World. de Oliveira will succeed Angela Gittens who has led the global voice of the world’s airports for twelve years, working collaboratively with the leadership of ACI’s five Regional Offices. Gittens announced her intention to retire at the end of June 2020. de Oliveira is well known throughout the aviation industry. He is currently the Executive Director and CEO of the Latin American and Caribbean Air Transport Association (ALTA). He will officially take up the role in June, with a 30-day formal transition. “Felipe is an aviation leader with decades of experience in business development and strategic planning, and has led international teams, in the private and non-profit sectors,” ACI World governing board chair Martin Eurnekian said. “Throughout his career in the aviation industry, he has established a strong record of building relationships at a global level and in the Americas, Middle East and Africa regions to advocate on behalf of the organisations he has represented”. INDUSTRY veteran South-African Jade Da Costa has joined Aero Africa. As Aero Africa’s CCO, Da Costa will be based in Johannesburg, responsible for the group’s commercial activities and product development
UK freight forwarders call for clarity in post-Brexit THE director general of the trade association that represents companies that handle the majority of the UK’s visible trade is calling for greater transparency and clarity in the effort to develop a new post-Brexit trading relationship. Robert Keen, director general of the British International Freight Association says: “In light of the change that will likely take place in the trading relationship between the UK and the rest of Europe, and the lack of any significant details on how that might change, BIFA members remain a little nervous. “The sooner that the government provides some clear communication and detail on the type of trade deal that the UK is seeking before the end of 2020, when the post-Brexit transition period runs out, the better for all concerned. “BIFA members will also need timely guidance and support to help them adapt and make the most of new opportunities as Britain sets its own trading policies. “Whilst the government has often stated that it desires a “zero tariff, zero quota” trade deal, many suggest that trying to achieve that before the end of 2020 is a very tight schedule and the prospect of a no-deal scenario at the end.
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AIR CARGO INDIA PREVIEW
air cargo India 2020 turns forensic on air cargo’s future digital growth T he eighth staging of air cargo India, organised by Messe Munchen India, offers industry stakeholders three days of knowledge sharing, informed opinions and business opportunities through a dedicated programme drawn keeping the participants in mind. It will take place from 25 to 27 February 2020 at Grand Hyatt in Mumbai.
Day 1
On Day 1, attendees can expect an enriching panel discussion on the topic: ‘State of digitalisation in the air cargo industry’. Speakers with many years of experience in the industry will put forth their ideas, opinions and thoughts on the topical subject of digitalisation, which is currently changing the industry gradually.
Shippers forums
Among the flagship properties of air cargo India are the shipper forums, which return year after year with speakers, who are not only established in their fields, but also drive change through their leadership. For the 8th staging, the forums, which will be spread over the three days include: perishables, pharma, air and eCommerce. The objective of the forums is to bring together professionals for a discussion and debate on the immense potential of various verticals and what the air cargo industry can do to deliver speed and visibility. The perishables, pharma, air and ecommerce shipper forums are supported by Bangalore air-
port, Pharma.aero, Frankfurt airport and Miami International airport respectively. air cargo India has onboard Zeal Global Group as the Platinum Sponsor, GMR Cargo as the Gold Partner, Atlas Air as the Exhibitor Lanyard Partner, Skyways Group as the Visitor Lanyard Partner, CargoFlash as the Delegate Bag sponsor and Cathay Pacific Cargo as the sponsor for Cafeteria & Visitor Bags. IBS Software and Unisys have come onboard as Track Sponsors.
Perfect platform
“The eighth edition of air cargo India serves as a perfect platform for the Kempegowda International airport, Bengaluru (KIAB) to exhibit its true potential as the gateway to a new India. The
Lobby at Grand Hyatt in Mumbai
Day 2
On Day 2, there will be panel discussions on the topics: ‘Trade tension drag on air cargo and building resilience’ and ‘The Indian subcontinent, the most promising air cargo export region of the world’. With the ever-changing geo-political scenario in the world, these topics will throw light on the impact of trade tensions on and opportunities in the air cargo industry.
Day 3
On Day 3, the final day, the panel discussion will be on the topic: ‘Transportation support for the digital world – building future capacity with new modes complementing the traditional’ will bring forth ideas for improving capacity by the gradual change of the traditional to the modern, with the help of a digital push.
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cargo industry in India is poised for remarkable advancements, as the Indian economy is set to grow significantly in the coming years. KIAB is committed to contributing to this development, thereby strengthening India’s position as one of the emerging cargo markets globally,” said Satyaki Raghunath, chief strategy and development officer, Bengaluru International Airport Limited (BIAL). The Perishable Shipper Forum is an integral part of air cargo India. The objective of the forum is to bring together the perishable exporters and offer them a platform to discuss and analyse various segments of the air logistics industry thereby addressing key areas of challenges and opportunities in the perishable export and supply chain. “BIAL’s aim is to make KIAB a successful passenger and cargo hub with state-of-the-art infrastructure and technological advancements that deliver operational efficiency. We are committed to providing consistent and reliable world-class air cargo solutions with a focus on the needs of our customers. Over the past few years, BIAL has invested substantially in world-class cargo infrastructure with ‘best-inclass’ cargo terminals for faster turnaround and processing. The current design capacity of BLR Airport’s combined cargo terminals is 570,000 tonnes, catering to both international and domestic traffic. There is scope to further expand capacity, up to 850,000 tonnes,” added Raghunath. Bengaluru airport is strategically located close to major industrial and business hubs and corridors in South India and currently has 15 cargo freighters flying to different parts of the world. “To boost cargo movement, we have strengthened our connectivity to catchment areas in the hinterland of Bengaluru, with the introduction of a dedicated road feeder service – under the brand name LOGI Connect – connecting Tirupur, Coimbatore and Ambur to the BLR Airport. This has given KIAB the upper-
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hand in establishing our airport as a major cargo hub across South India,” added Raghunath. The master plan of the airport has also incorporated additional space for the development and building of an integrated air cargo and logistics hub in the future on the East Side of the airport to cater to an eventual demand of between 1.2 – 1.5 million tonnes of cargo in the long-term.
air cargo India 2018
The last staging of air cargo India witnessed participation from 2,354 visitors, 74 exhibitors and 478 delegates. The 2020 event is expected to be bigger and better in terms of networking opportunities and knowledge exchange.
Miami Airport, silver sponsor
Recognising the tremendous potential India as a developing market for Miami International Airport (MIA), the number one airport in America for international freight, has come aboard as the Silver sponsor and partner for the eCommerce Shipper Forum. Emir Pineda, manager, aviation trade and logistics, MIA said, “According to Forrester Consulting, India is the fastest growing eCommerce market in the world. India is expected to generate approximately $100 billion in online retail revenue out of which $35 billion will be through fashion eCommerce. This is also the largest sector in Latin America. MIA is positioning itself as the eCommerce hub of the Americas, with the end goal of maximizing fast and efficient clearance/processing/distribution of eCommerce products from around the world.”
AIR CARGO INDIA PREVIEW
The eCommerce Shipper Forum is an integral part of air cargo India. The objective of the forum is to bring together the eCommerce professionals for a discussion and debate on the immense potential that the rapidly growing eCommerce sector offers and what air cargo industry can do to deliver speed and visibility. “The Indian market is a strategic region for MIA due to its sheer size. India is the fastest-growing trillion-dollar economy in the world and the sixth-largest with a GDP of $2.61 trillion) pharma trade (number 1 import market for pharmaceuticals with over 1,000 tonnes) and, trade/ investment opportunities. India trade with Florida grew 38% in 2018. “Given these statistics we are aggressively working on developing direct air service for both pax and cargo to India. We feel the best way to promote what MIA has to offer and to reach the biggest audience possible is by participating at air cargo India 2020. “The conference gives us an opportunity to meet with top regional industry leaders, develop new and lasting relationships, and network with top shippers, in particular in the pharma business. For us air cargo India will continue to be a must attend conference,” adds Pineda.
Attendees to air cargo India are invited to pop along to ACW’s stand DO24, to visit our Development Director Martin Kingwell
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Pineda further elaborated on MIA’s recently launched cargo pre-clearance to Brazil for eCommerce that has been scaling up with thousands of shipments now cleared in Miami arriving in Brazil as domestic shipments being delivered by Brazilian postal service. “We want to expand this programme globally. We believe our success in developing air service to India will come from the market’s need to bridge our two regions desire to trade both eCommerce and pharma products. These products along with other commodities like perishables, aerospace, industrial tech, etc. will be the foundation for the new air service. It’s only a matter of time,” says Pineda.
Welcome to Mumbai control tower at Chhatrapati Shivaji Maharaj International Airport, Mumbai
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ECS Group connects Asia to the world Region has great potential for GSSA’s client airlines as world still desires Asian products
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obert Van de Weg, chief commercial officer of Paris-based GSSA, ECS Group, thinks Asia is a great location for the group, displaying great potential. He says: “As ECS Group we are generally well covered in the Asia Pacific Region. In particular in South East Asia and South Asia, India, and of course we have a presence in China which we aim to expand upon. “Last year, we acquired WEXCO which is a valuable addition to our portfolio as it enlarges our footprint to Australia and New Zealand. In North Asia, such as Japan and Korea, we still work through partnerships and this is an area where we aim to strengthen our presence in the near future.”
Business prospects
Van de Weg is of a positive mind regarding the potential of the region for the company. He says: “I am positive. We see a growing requirement for outsourced sales activities in particular from leisure carriers. And due to cost pressures, we are also seeing increasing interests from the more traditional carriers. As ECS Group, we are investing heavily in digital tools and revenue management expertise, something our customers can benefit from apart from potentially saving costs. “We continuously develop our airlines portfolio by signing new contracts. An example of a recent one is the CSA contract we’ve signed with Thai Lion Air for international cargo sales covering the Thailand territory, through our subsidiary AVS GSA TH, effective January 1.” The group’s clients are especially strong in intra-Asia traffic while serving customers “in all directions,” he notes.
Short-term blues
In the short term, business is dropping in both
directions, reveals Van de Weg. “After a strong mous potential and with a large size already 2017/2018 and early 2019, the tide turned today. We have a good presence there and are in second half of 2019. The tariff escalation working on various new projects with good between China and the USA certainly did not potential. “For instance, we’ve recently signed a GSSA help here. “Now on top we have the corona virus situ- contract with STARLUX Airlines, based in Taiwan, Taipei, to ation which leads represent it from to a dramatic drop Vietnam’s internain Chinese exports tional airport of Da for now as ChiNang, through our nese New Year subsidiary there, holiday is essenGlobe Air Cargo, tially extended. led by Jason Duc. “However, when Flights ex DAD have the epidemic substarted on January sides, fortunes could 23, with the fleet of quickly reverse A321 neo. as there will be Van de Weg says: tremendous back“We’re very pleased logs of imports to start this new and exports which Ho Chi Minh City, Vietnam journey with STARonly airfreight can LUX Airlines which quickly solve. began its first “We are living in flights in January an internationally 2020 from Taipei connected trade to Macau, Da Nang system and this and Penang. is one of the risks “We will also of that system. I represent STARam confident that LUX Airlines ex supply chains will Philippines (CEB) adapt quickly to the through AVS GSA, new situation as we led by Gladys Grace have seen in previAlbao, starting on ous disruptions like April 6.” the ash cloud crisis eCommerce, in 2010. The impact on the passenger business will in my opinion be especially intra-Asian traffic, continues to grow and for the next few years Van de Weg expects more severe - as cargo cannot feel fear.” Van de Weg says: “China is an area where we will be the main engine of growth. Generally, growth of online purchases is still need to improve our footprint throughout the country and we are looking at ways on how expected to continue at 10-15% over the next five to 10 years, barring short term shocks and to achieve this. “Vietnam is an airfreight market with enor- peaks, he predicts.
“Vietnam is an airfreight market with enormous potential”
FROM April 1, the Cathay Pacific Group will introduce a new Terminal Charge concession. Customers of export shipments from Hong Kong on the group’s four airlines – Cathay Pacific, Cathay Dragon, AHK Air Hong Kong and HK Express – will enjoy a saving HK$0.3 per kilogramme for both general cargo and special cargo. The reduction ranges from 18% to more than 20% compared with the current charge levels. The concession will be partially contributed by the Airport Authority of Hong Kong (AAHK). Cathay Pacific chief customer and commercial officer Ronald Lam said: “We are driving the Terminal Charge concession to reinforce the competitiveness of Hong Kong International Airport. Cathay Pacific has been Hong Kong’s home airline for more than seven decades and we are immensely proud of the efforts and achievements we’ve made in helping it become the largest and most efficient multi-modal integrated logistics and aviation hub in Asia and the world.”
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Changi Airport’s collaboration with its air cargo community
CHANGI Airport Group (CAG), working with the Singapore’s Civil Aviation Authority, Enterprise Singapore and Workforce Singapore, will be supporting the air cargo community, with dnata Singapore and Singapore Airlines as pioneer members, to pursue certification of International Air Transport Association’s (IATA) Centre of Excellence for Independent Validators for Perishable Logistics (CEIV Fresh). The four parties will co-fund certification costs, with the aim to strengthen Changi’s capabilities in the handling of perishable cargo. The community is the first in SE Asia to undergo the CEIV Fresh certification. SATS will also pursue the CEIV Fresh certification for their network, to complete by April 2020. Perishable cargo represents about 13% by volume of Changi’s total air exports and imports. The top cargo markets for perishables to and from Changi are Australia, Norway and India. Lim Ching Kiat, CAG’s managing director of air hub development said: “Although the air cargo industry has slowed down globally, it is now even more important for the Changi air cargo community to be connected and build a stronger partnership through collaboration.”
TRADE&EVENTSFINDER Freight Forwarders
Industry Event
Hong Kong
Freight Forwarders USA
GSSAs
Int’l Logistics
United Arab Emirates
Denmark
Industry Event
World Air Cargo Awards 2020
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ACW 10 February 2020
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HE ALWAYS WONDERS ‘HOW GREEN WAS MY VALLEY’?
The future of smart transport and cities
THE UK has set an ambitious target of becoming a zero emissions economy by 2050. Transport and logistics can play a significant role in hitting this target by implementing smarter transport solutions, believes Trevor Hoyle, svp, ground ops, FedEx Europe
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s governments around the world set out their environmental agendas, the business community must listen and adapt. The UK has set an ambitious target of becoming a zero emissions economy by 2050. The transport and logistics sectors can play a significant role in hitting these targets by implementing smarter transport solutions. FedEx is the world’s largest express transportation company, connecting 99% of the world’s GDP, and delivering more than 15 million shipments per day. Operating at such scale comes with huge complexities, especially in the environmental context. But navigating these issues is not just about seeking route efficiencies and replacing aged assets. At FedEx, we have already achieved some notable successes in air freight through sustainability-focused initiatives. The global air fleet is being continuously upgraded with more efficient aircraft which deliver improved fuel efficiency and reduced emissions. In combination with the FuelSense programme, and an overarching approach to logistics based on the principles of Reducing, Replacing and Revolutionizing (The Three Rs), in FY18, the company was able to save more than 204 million gallons of fuel and avoid more than 1.97 million tonnes of CO2 emissions. In the decade since 2009, CO2 emissions intensity have also been decreased by 37%.
Smart Transport
Perhaps more tangibly exciting right now, however, is the potential for change in trunk-routing, driven by land-based Smart Transport innovations. Electric vehicles have reached an important milestone with the technology becoming commercially viable. This is a major turning point for the future of trans-
port and all associated industries. But the electrification of vehicles is only one small step onto the road of change. The innovations which accompany battery-powered vehicles offer significant opportunity for the logistics sector. Automated vehicles are estimated to have the potential to increase productivity by freeing drivers up by as much as 225 hours a year each. For logistics operators, this will help ease the challenges faced by a growing driver skills shortage, while for existing drivers, means they can acquire
a completely Smart Transport system, we will need a clear vision and strong leadership to ensure the societal and economic advantages of this technology are fully realised, supported by close public-private collaboration and consultation to make this happen.
Changing infrastructure
Planning, design and access to charging-infrastructure all need to be considered as part of the holistic solution to
but what other Smart innovations can be employed? Can planners and logistics companies seek new partners in other areas of the transport sector? The possibility of working with rail companies, for example, and finding the means to open up passenger rail capacity for cargo space, especially in bigger cities, could have huge potential. The right links could mean fewer large trucks or vans needed in our city centres and goods efficiently taken much closer to the intended recipient. Meanwhile, research suggests that as many as 95% of city centre deliveries could be fulfilled by e-bikes, for example, reducing demand on road and parking space, and also reducing congestion. Leveraging existing ‘cycle super-highways’ can also be explored. Industrial partners could potentially support local government in developing these networks in exchange for usage rights.
Role of logistics
new skills associated with managing connected and automated (CAM) vehicle networks. By being connected through smart technology, CAM vehicles share data on road networks which will not only lead to road safety improvements, but will also increase efficiencies in route planning, vehicle deployment, capacity optimisation and fuel/energy utilisation. By 2026, all new vehicles in the UK will be connected, so it is not a question of if these technologies will become the standard, but when. To steer us through the transition to
this shared challenge. If the wrong decisions are made and there is no provision for logistics, we could end up with a patchwork of experiments and compromises that may undermine the fundamental goal. And that is really where the impact will be felt - the last mile. Every city is different, and urban planners need to consider the best mix of Smart solutions on a case-bycase basis. Congestion will be a key issue – connected and electric vehicles will go some way to reducing emissions and taking vehicles off the road during peak hours,
Logistics services will play an important role in shaping the Smart Transportation and infrastructure landscape. The argument for logistics to be considered an essential service is getting louder and harder to ignore. There are obvious parallels with the national Postal Service: logistics too provides arteries for trade to flow. Add to this, the discussion which indicates that personal vehicle ownership will soon be a thing of the past, driven not only by the UK’s net zero deadline, but also because of rapidly falling driving license
acquisition numbers. It is easy to see how the supply chain’s remit will expand as a direct result, meaning dramatic changes for the transportation process.
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